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MKTG 301 Chapter 6
Exam 2 Chapter 6
Terms in this set (43)
Dividing the market into smaller segments of buyers with distinct needs, behaviors, or characteristics that may require the marketer to use separate strategies or marketing
Market targeting (targeting)
Process of evaluating each market segment's attractiveness or
identifying marketing segments to enter
Differentiating the market offering to create superior customer value
Arranging for a market offering to occupy a desirable, clear, and distinct position relative to the competition in the minds of target buyers
Dividing the market into geographic units (nations, states, regions, counties, cities, neighborhoods); many companies now localize their products, advertising, and promotions in response to geographic segmentation
Dividing the market into segments based on demographic
characteristics such as age, life-cycle stage, gender, income, occupation, religion, education, ethnicity, or generation; these variables are easier to measure than most other variables
Age and life-cycle segmentation
Dividing the market into segments based on membership in age or life-cycle groups; customer wants and needs change with age and life changes
Dividing the market into segments based on buyer's gender (male/female)
Dividing market into different segments based on buyer's income; marketers can, for example, target wealthy buyers with luxury and convenience services
Dividing the market into segments based on social class, lifestyle, or personality; marketers must remember that people with the same demographic characteristics can have very different psychographic characteristics
Dividing market into segments based on consumer knowledge, attitudes, or responses to a product or service
Dividing market into segments according to occasions when buyers recognize the need to buy, make the purchase, or use the product they have purchased
Dividing market into segments according to the benefits customers seek from the product they purchase
Marketers can segment buyers into regular users, non-users, ex-users, potential users, first-time users; marketers want to retain regular users, attract non-users, and develop new relationships with ex-users.
Marketers can segment buyers into light, medium, or heavy product users.
Marketers can segment the market by consumer loyalty. Buyers can be loyal to brands, stores, and companies; buyers can further be divided based on degree of loyalty.
Segmenting business markets
Most companies serve at least one business market. Many of the same variables used for consumer markets can be used for business markets. Marketers can use additional variables for business markets, including operating characteristics, purchasing approaches, situational factors, and personal characteristics.
Segmenting international markets
Markets can be segmented by geographic location, economic factors, political and legal factors, and cultural factors.
lntermarket (cross-market) segmentation
Forming segments of consumers who share needs and buying behaviors even though they are located in different countries
A group of buyers sharing needs or characteristics that the company has decided to serve/address
Undifferentiated (mass) marketing
Market-coverage strategy where the company decides to ignore market segment differences and pursue the entire market with one approach; marketers design a product and marketing program that will appeal to the largest numbers of customers
Differentiated (segmented) marketing
Market-coverage strategy where the company decides to target several market segments; marketers design different approaches for each segment
Concentrated (niche) marketing
Market-coverage strategy where the company goes after a large share of one or more market segments or niches
Tailoring products and marketing efforts to the needs of specific individuals and local customer segments (including local marketing and individual marketing)
Tailoring brands/promotional efforts to the needs of local customer segments (e.g., cities, neighborhoods)
Tailoring products and marketing efforts to the needs of individual consumers (also referred to as one-to-one marketing, mass customization, markets-of-one marketing)
Choosing a targeting strategy
The best strategy depends on the company's resources and degree of product variability; market variability and competitors' marketing strategies are also factors to consider.
Socially responsible target marketing
Target marketing can lead to controversy when companies target vulnerable and disadvantaged consumers with potentially harmful products (e.g., marketing sugary cereals to children).
How a product is defined by consumers based on its important attributes; the place a product occupies in buyers' minds relative to competing products
Marketers prepare perceptual positioning maps to illustrate consumer perceptions of their brands compared to competitors' products.
When a company attains an advantage over another company by offering greater customer value; this can be achieved by offering lower prices or providing more benefits to justify a higher price
When competing products/companies look the same, buyers may perceive a difference based on brand-image differentiation; brand image should convey a product's distinctive benefits and positioning.
one product is clearly better
"better" is a matter of opinion
Unique selling proposition (USP)
Aggressively promoting only one product benefit to the target market; advertising executive Rosser Reeves feels that a company should develop a USP and stick to it; each brand should pick one attribute and tout itself as "#1" on that attribute
Choosing brand differences to promote
Not every brand difference is meaningful and worthy of promoting. To determine whether a difference is worth promoting, consider whether it is important, distinctive, superior, communicable, preemptive, affordable, and profitable.
Full positioning of a brand; full mix of benefits upon which the brand is positioned; answers the question "Why should I buy this brand?"
The company provides the most upscale product and charges a higher price to cover the higher costs
A response to the more-for-more approach
Offering the same product for less money
Offering less and charging less for it; meeting consumers' lower expectations at a much lower price
The winning value proposition is to do this; this is a difficult position to sustain.
Summarizes the company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).
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